News & Publications
Africa Market and Lombard Fund News
15 full tankers off the British coast can't sell their Oil
18 Nov 2016
Asia: markets flat to slightly lower outside Japan on Emerging Market weakness after DXY breakout. Overnight Yellen most hawkish and Dec rate hike pretty much given and says trajectory higher. She also confirmed she will serve out her full term.US10y hit 2.3% and Financials led. SPX just 30bps off all-time high. Vix -3% back to support levels and showing Demark sell exhaustion tonight. DXY blew through 100.40 resistance and now the UST/JGB yield differential out to 2.3% as Japanese govt holds yields close to zero, creating a carry trade funded by JPY shorts. TED spread widens again and EuroDollar basis swap market sags, potentially a bearish -ive equity indicator. Oil $44.90 lower not helped by FT report that 15 full tankers off the British coast can't sell their Oil. Next week US Housing numbers and Thanksgiving..Zerohedge says last time EUR fell for 9 consecutive days was Sept 2008...Nikkei +0.7% and USDJPY 110.72 up from 103 just 2 weeks ago and RSI hits 80..Autos leads and Utilities lag..SHCOMP -0.2% and as of yet no SZ connect announcement, so Monday looks unlikely..CNY FIX 6.8796..Chinese home prices start to show signs of moderating, and Chinese property investment into the UK jumps +30%..China Oct power demand +7% vs +6.9% in Sept..HK +0.2% and Financials lead. Commodities lower as China looks to curb night trading and strong USD....Taiwan -0.3% with foreigners still on the selling side.Mediatek, flat, vice chairman says Chinese smartphone demand weakened last Q..Korea -0.3% and again Financials lead..IPO Doosan Bobccat opens +20%..Hynix +0.5% lags Micron +5% overnight..TWD touches 32.00 helps Tech margins. Currencies weaker vs USD..Gold $1208 to a 5 month low. Oil $44.90.. Best Sectors Financials, Property and Macau. Worst Sectors Utilities, Chemicals and REITs
U.S Equities: The FED will be raising rates, Cisco’s (-5%) earnings missed last night, Walmart (-3.5%) cut its guidance, and the S&P closed within 5 points of its all-time high. Financials (+1.25%) resumed their rally as talk that China reduced its holdings on Treasuries resulted in the 10year Yield moving to 2.28 (+7bps) and the Curve Steepening. Consumer Discretionary (+1.22%) seems to be have a small renaissance as electronic retailer Best Buy (+13%) beat and raised. Tech (+.7%) continued to stabilize and Biotechs added 1.4%. The Strength in the DXY (101, +50bps) seems to be weighing on Commodities.
Commodities: Iron ore is heading for the biggest weekly decline in six months as China’s move to cool speculation in futures hurts prices in the largest user, and BHP Billiton Ltd.’s Analyst forecast renewed weakness after the raw material staged a surprise rally to a two-year high. Oil extended its losses for a third day as a rally in the U.S. dollar offset optimism by Saudi Arabia that OPEC will finalize a deal this month to curb output and stabilize prices.